Avnet 2008 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2008 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
to fiscal year 2010. The Company is evaluating the potential impact on its consolidated financial statements upon
adoption of SFAS 157.
In July 2006, the FASB issued Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes —
an interpretation of FASB Statement No. 109 (“SFAS 109”). FIN 48 clarifies the accounting for uncertainty in
income taxes recognized in an entity’s financial statements in accordance with SFAS 109 and prescribes that a
company should use a more-likely-than-not recognition threshold based on the technical merits of the tax position
taken or expected to be taken. Tax positions that meet the more-likely-than-not recognition threshold should be
measured in order to determine the tax benefit to be recognized in the financial statements. Additionally, FIN 48
provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure
and transition and was effective beginning the first quarter of fiscal 2008. The adoption of FIN 48 did not result in a
cumulative adjustment to retained earnings (see Note 9).
In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of Financial Assets —
an Amendment
of FASB Statement No. 140” (“SFAS 156”). SFAS 156 provides guidance on the accounting for servicing assets and
liabilities when an entity undertakes an obligation to service a financial asset by entering into a servicing contract.
This statement was effective for all transactions at the beginning of fiscal 2008. The adoption of SFAS 156 did not
have a material impact on the Company’s consolidated financial condition or results of operations.
In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments — an
Amendment of FASB Statements No. 133 and 140
(“SFAS 155”). SFAS 155 allows financial instruments that contain
an embedded derivative and that otherwise would require bifurcation to be accounted for as a whole on a fair value
basis, at the holders’ election. SFAS 155 also clarifies and amends certain other provisions of SFAS 133 and
SFAS 140. SFAS 155 was effective beginning fiscal 2008. The adoption of SFAS 155 did not have a material effect
on the Company’s consolidated financial statements.
Fiscal 2009
Subsequent to fiscal 2008 year end, the Company completed its acquisition of Horizon Technology Group plc in
an all cash offer for €1.18 per share, or approximately $160.5 million. Horizon is a leading technical integrator and
distributor of information technology products in the UK and Ireland with sales of approximately $400 million in
calendar year 2007. The acquired business will be reported as part of the TS EMEA reporting unit. The Company
also made two smaller acquisitions in July 2008, Source Electronics Corporation with annualized revenue of
approximately $82 million which will be reported as part of the Electronics Marketing (“EM”) Americas reporting
unit and Ontrack Solutions Pvt. Ltd. with annualized revenue of approximately $13 million which will be reported as
part of the TS Asia reporting unit.
Fiscal 2008
On March 31, 2008 (the beginning of the fiscal fourth quarter), the Company acquired UK-based Azzurri
Technology Ltd., a design-in distributor of semiconductor and embedded systems products with annual revenues of
approximately $100 million. The acquisition is reported as part of the EM EMEA reporting unit.
On December 31, 2007 (the beginning of the fiscal third quarter), the Company acquired YEL Electronics Hong
Kong Ltd., a distributor of interconnect, passive and electromechanical components in Asia. The acquired business
with annual revenues of approximately $200 million is reported as part of the EM Asia reporting unit.
On December 17, 2007, the Company completed its acquisition of the IT Solutions division of Acal plc Ltd. The
Acal IT Solutions division is a leading value-added distributor of storage area networking, secure networking
51
2.
Acquisitions, divestitures and investments